How a payment gateway is working?
The work of the gateway in simple words is to create a temporary unique address for the desired transaction. This takes place from the side of the seller and “asks” the buyer to send a specified amount of coins to the specific address.
Then the gateway is informing the buyer about the exact exchange rate and the available time frame that he has in order to complete the transaction. So the buyer can use the given address or QR code in order to send the required sum of coins with his e-wallet. Finally, he is waiting for some seconds for the confirmation and the transaction is completed.
With every single transaction being recorded in the blockchain, the user can anytime easily prove that he has send the sum to the seller. This is offering a supreme level of transparency without the need of any third party like a bank.
Another important aspect is the fact that this way the transaction fees are usually significantly lower than the fees that a third party would take for the completion of the same transaction.
There are multi-coin payment gateways and exclusive payment gateways which are designed for a specific digital coin.
The first are developed for accepting different digital coins and are very popular because many projects don’t have the needed technical know-how in order to create their own native gateways.
So they ask third parties to add their digital coin to their solutions. This type of gateways are sometimes a good option for businesses which wish to use just one plug-in for more than one digital coins.
On the other hand, the exclusive payment gateways are designed exclusively for a specific coin, usually offering the maximum security.
The fact that a coin has its own exclusive payment gateways can be considered as a big plus for the development power and the potential of the Project. It doesn’t of course mean that it cannot be hosted in multi-coin gateways as well for extra options.